Agreement includes shared-reward provisions for additional salary increases based on formula of enrollment growth and state funding

by Geoff Larcom, Published October 02, 2010

YPSILANTI - Eastern Michigan University and the EMU Professional/Technical Union (UAW-1976) have reached a tentative agreement on a three-year contract.

The new agreement includes a two percent salary increase for this fiscal year, contingent on a formula based on a combination of increased student credit hours and the level of Eastern's annual state appropriation (see explanation on page two). Because this year's credit hours and level of state funding meet the formula's threshold, the contingent increase will take effect retroactive to July 1, 2010. The agreement also includes increases in union members' contributions to health care coverage.

In year two, employees will receive a 1.5 percent salary increase, plus a contingent increase of an additional 1.5 percent, based on the same formula. In year three, employees will receive a two percent salary increase, with an additional one percent raise contingent on the formula.

In addition, union members will receive a $1,250 increase to their base salary on January 1, 2011 to help offset the additional costs associated with changes in health care plans that begin for University employees at that time.

"We are extremely gratified to reach a tentative agreement with the Professional/ Technical Union," President Susan Martin said. "Our professional/ technical employees are integral to the operation of the University, and contribute immensely to our excellence. I congratulate the union and the administration bargaining teams for their creativity in creating a shared-reward structure, addressing higher health care coverage costs, and for their professionalism and their hard work."

The $1,250 one-time salary increase was calculated to adequately help offset increased health care costs for the specific average pay level of members of the P/T union.

The contingency salary increases allow the University to address the continuing uncertainty of the state's economic conditions, yet also appropriately share financial rewards based on the University's future growth and success.

Eastern's enrollment has grown by more than 7 percent in the last two years. The state legislature recently voted to reduce state funding for all Michigan universities by 2.8 percent for this fiscal year.

The EMU professional-technical union has 398 members, including 373 full-time workers and 25 part-time employees. A vote by union membership on the tentative agreement is scheduled for Oct. 15.

Last month, Eastern Michigan University reached agreement with its largest employee union, the AAUP, which represents professors at Eastern.

The formula establishing the threshold for the contingent increases is:

State appropriation revenue and student credit hours must increase by a weighted average of 1 percent or greater than the prior year. Weighting is 70 percent for student credit hours, 30 percent for state appropriations.

Contingent Pay Increase Formula

Example if in effect for FY11 (70%/30% weighting based on FY10 revenue mix)

FY09

FY10

Percent Change

Weighting

Weighted Percent Change

Student Credit Hours

513,148

535,096

4.28%

70.00%

2.996%

State Appropriation (thousands)

$78,551

$78,212

-0.43%

30.00%

-0.129%

2.867%

Under this scenario, a contingent pay increase would be awarded (2.867%>1.0%)